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International Management #3 - Essay Example

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Joint ventures in any country is hard to operate successfully with shared control. Nearly a decade ago, the concept of joint ventures started losing its appeal to acquisitions and developing multi-national corporations as opposed to negotiating and starting a joint endeavor…
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International Management #3
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Download file to see previous pages Following a lift in the ban on the sale of foreign game consoles in China, the developments made it easy for Microsoft to consider a joint venture with a Chinese partner. But the Chinese lift on the ban had a condition: all the companies’ hardware and products will be produced in China. In 2013, Microsoft took the opportunity and formed the joint venture with a Shanghai media company called E-Home Entertainment, in order to make games and consoles (Hong, 2013). In this attempt at the joint venture with a regional Chinese media giant, Microsoft aims to establish itself in the lucrative gaming market in China so as to capitalize on its expertise and intellect.
The two partners, which include Microsoft and BesTV New Media Co., a subsidiary of Shanghai Media Group, are to develop and sell its own gaming consoles and softwares along with entertainment related and other third party products. So far, it has only been one year since the joint venture took place and the two are determined to progress exponentially in their business. BesTV currently has nearly 18 million IPTV subscribers in China, Southeast Asia, and Eastern Europe thereby possessing a significant chunk of the market share. The combined investment from the two partners amounts to about $237 million with a 51 % share with BesTV (Hong, 2013). All of this was possible after the Chinese government decided to lift its ban on international gaming consoles thereby allowing similar business endeavors to take place. With this development, Microsoft now aims to launch one of their most popular products, Xbox One in China and explore possible business opportunities in the regional market.
2. The local Chinese gaming market has seen a regional transformation in its technology as well as consumer preferences. No longer are consumers interested in or are willing to buy low quality, inferior gaming softwares or consoles. The ...Download file to see next pagesRead More
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